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Is Cap Gemini Really Ahead When it Acquires EY's Tech Practice?

by AccountingWeb on May 18 2000printer friendly

Cap Gemini[1] today received the approval of the European Commission to purchase Ernst & Young's[2] Ernst & Young's Global Consulting and IT activities.

While analysts previously have predicted that this step moves the European giant one step further in strengthening its consulting services across Europe, the Commission disagreed.

Instead, the Commission stated that technological innovations will become more important than who actually 'owns' the business, and that the market will remain fragmented because innovations are happening at such a rapid pace. The players, essentially, aren't as important as technology itself.

However, because of the existing players throughout the European sector, the Commission saw no reason to block the acquisition, stating that it made sense and was in harmony with the European Economic Agreement.